Everybody says they want freedom.
At least that's what they tell me.
They always say “I want freedom!”
But they always follow it up with… “I just don't want to do the hard work required to attain it.”
I always want to say to them:
You already work hard. Right now you have nothing to show for it and you're always tried and frazzled at the end of the work day.
If you simply shifted focus onto achieving your freedom you'll still have to work hard but at the end of the day you will have something to show for it - freedom and success.
So rather than ending your days frazzled and tired, you could end your days wired and inspired, just like me.
And actually, achieving financial freedom so much easier than you think it is.
If you knew the 6 secrets to achieving freedom you wouldn't even think it was hard work, just plain old common sense.”
However…
They don't listen so I don't bother talking to them.
You, on the other hand, have a yearning for freedom and a thirst for the knowledge of how to obtain it.
You wouldn't be here if you didn't want to know the secrets of freedom.
So for you, friend, here they are…
The 6 Secrets of Financial Freedom
Here are the 6 absolute ways you remain free.
Follow these rules and flourish, disregard these rules and fail.
The choice is yours, but never say you have not been educated in the ways of the free man.
1) Never go into debt for any reason
Listen to me clearly…
Debt is slavery.
- You will be enslaved if you take loans at interest.
- You will be a slave if you use credit cards.
- You will be a slave if you get a mortgage for your house.
- You will be a slave if you get a loan for your automobile.
Can you remember what I said?
Debt is slavery.
Eliminate all debt from your life immediately and forever.
If you remember only one thing in this life it it this: NEVER GO INTO DEBT FOR ANY REASON.
Never take loans for any reason unless these loans are at 0% interest.
Usury is slavery. You will not be free if you owe interest.
Don't get credit card for any reason. A credit card is a cleverly named debt card.
2) Never buy anything unless you have enough cash to buy 10 of them
It is important to pay cash for everything you purchase, but it is also important to have ENOUGH cash to pay for everything you need.
If you have 10k in the bank you should never pay 10k for an automobile.
If you have 10k in the bank you should purchase an automobile for 1k.
NEVER exhaust your money supply by buying something too expensive.
You should have at minimum 10X the amount of cash as the cost of whatever you want to purchase.
Never buy luxury until the luxury seems cheap.
Be happy with less because the reality is this: The more you have the less happy you are.
3) Pay cash for your house and automobile
I say: “Pay cash for everything you purchase!”
They hear: “Pay cash for everything you purchase except for your house and car, it's ok to get a loan for those.”
No, no, no, goddamn no!
Pay cash for your house! Do not get a mortgage, ever. Never!
Pay cash for your automobile. Do not get an auto loan, ever. Never!
You will never be free with a mortgage or an auto loan. it is only when you are free and clear of any and all debt that you are actually free.
The most enslaving device in this world is a mortgage, the 2nd most enslaving device is an auto loan.
Do not purchase ANYTHING unless you have cash money to purchase it.
If you don't have the cash to purchase a house, rent instead.
Or be a nomad like your ancestors were.
4) Don't work at a job, build a business
You already know this well: jobs are for slaves.
You give away the product of your labor to your boss (imagine grown men calling another man “boss”).
When you build your business you do exactly the same amount of work you do by working a job.
But!
When you build a business you get to KEEP the product of your labor.
Building a business is the gift that keeps on giving.
Imagine this…
You get paid for doing your work but you also get paid in the future for the work you did in the past.
When you work a job you only get paid for what you do right now.
If the work you do right now makes the company 10 million dollars in the future you get to keep exactly zero of that extra future income.
However when you own and build your own business, you keep all of the future profits instead of giving away the product of your hard labor.
Building a business is win-win. Pick something your enjoy doing and do it every day.
5) Don't keep up with the neighbors
Keeping up with the neighbors habit of “buying” toys is a race to see who can be a bigger slave.
“Honey, the neighbors bought a new 100k boat with a loan. We should buy a 200k boat with a loan to show them who is more successful!”
The most successful is the one who has these 2 things:
- No debt
- Cash ready to spend.
Your neighbors are grown-up children, they see toys and they have to have them, no matter what the cost is.
In the end these toys cost you your soul, so don't keep up with the neighbors. Let them drown in their own greed and stupidity.
6) Never be greedy
It is your own greed that enslaves you.
To understand how greed enslaves you, you must understand our money system…
Money is just a means to an end. Money is not inherently valuable.
Our money is not backed by gold. Our money is created out of thin air by the central bank.
They give this money created out of thin air to you as a loan They ask that you pay interest on this money that was created out of thin air.
They want you to pay back more money than exists in the world.
The secret of loans is that they can never be fully repaid.
There is not enough printed money in the world to pay back all of the loans in the world. The money supply is not big enough to pay back loans.
What does this mean?
If you do not have the backbone to say no to buying stuff you will be in constant debt to the money lenders.
Forever.
Until you get out of the usury business you are always a slave. To get out of the usury system it is only necessary to give up greed.
ALWAYS BE VIGILANT.
Understand that debt is not necessary for you to live. It is a tool of slavery.
If you want to be free, you have to understand this money system exists only to enslave you and this system exploits your need and greed for new toys.
All you have to do, friend, is say no.
Make your money the old-fashioned way, by doing some type of work or service.
When you have enough of these dollars in your pocket you can buy a house, a car, a whatever.
But never buy this stuff before you have the money. Never let greed takeover your life because it is your simple-minded greed that allows you to be enslaved.
Don't be greedy and don't be stupid anymore. You are now armed with the knowledge of how to obtain freedom for yourself and for your family.
What did we learn about freedom?
- Never go into debt for any reason - Debt = Slavery, this is not hyperbole it is reality.
- Never buy anything unless you have enough cash to buy 10 of them - Spending cash haphazardly will force you to do stupid things to obtain more money.
- Pay cash for your house and automobile - Home and auto loans are the biggest hurdle to achieving freedom.
- Don't work at a job, build a business - A business of your own is how you obtain future wealth rather than being paid a day wage for your precious time.
- Don't keep up with the neighbors - Being envious of the neighbors toys and gadgets will take you right to the bottom.
- Never be greedy - In the end, you will understand that is was your own greed and naivety that enslaved you.
These 6 simple steps show you how to stay free my friendly friends.
The rest is up to you…
Will you achieve freedom?
Or are you perfectly happy in slavery?
Who knows, friend.
They all say they want freedom but when it comes right down to it, I'm not so sure…
Until next time.
Your man,
-Victor Pride
Classic VP! Love it.
Very good article!
I am in the midst of paying off my debt, just cleared a £5,000 credit card last week.
It felt amazing paying it off.
Although from reading this article, I’m in the group of needing to get rid of my car and home loan.
Let’s get started!
Can I share screenshots of this article?
Or does it have to be the whole thing?
Share whatever, but give credit.
Will do, thank you for the reply.
Literally my 22nd birthday today and it’s a great day because I feel like I’m financially free with a great future now, I have a digital marketing agency that I’ve built from being broke to 3k/month in a few months and I can see countless clients on the horizon.
Just wanted to thank you Vic because you were literally my first source of online income at 19, I made a reddit post reviewing 30DOD with an affiliate link and it went viral and I made like $230 in a day and about $400 over a week and it lead me to getting into online marketing and running my own online business so thank you man.
Congratulations on all your success!
Thanks mate
Well done Josh, is that a skill you’ve self taught?
No, I paid $500 for a course, I wont say the name of it because I dont want to be accused of shilling it.
Took me a fuckload of cold calls, appointments and fuckups to get to 3k/month but once you get to a certain point it clicks and things start working.
Awesome! I turn 30 today. Get some..!
Thank you Victor for this great article.
If only they taught these things in school…
I’ve started living “below my means” since discovering your blog in 2013. Thank you from Italy.
Ciao Valerio, saluti dal Texas! Ascolta Dave Ramsey (3 ore di podcast quotidiano) e continua a seguire B&D!
Translation for non Italian speakers: Hi Valerio, greetings from Texas! Listen to Dave Ramsey (3 hour long daily podcast) and keep following B&D!
Dave Ramsey is all about saving.
It might work for some, but he has more of a scarcity mindset.
I don’t think uncle Vic is talking about saving. His point is still to live the good old Spart lifestyle. Not to buy unnecessary stuff.
Ciao ragazzi. Saluti da Macedonia :)
Ciao EA, grazie per il tuo messaggio but I agree with Lupebogi from Macedonia.
Instead of focusing only on saving/spending less (which I find important, but also very dangerous if it’s the only thing you aim for), I prefer focusing on increasing earnings (so that you can also save more), something that Victor here also seems to be focusing on.
Ramit Sethi talks about this very well.
PS: I host an Italian podcast with interviews to experts on personal development / mindest / finance. Let me know if you would like to listen to it :)
Divertiti in Texas, io sono stato un mese a Austin!
Atta boy Vic
Number 2 on the list is pure Gold!!
I am gonna follow it from now on. It seems really simple but strangely, I’ve never heard of it.
Yet another great article Vic!
No Fab November is still going!
Add to that, I’m gonna lose 20 lbs of fat and be jacked.
I really am gonna do it this time. I KNOW it.
Same here, for me this is the best advice towards money I’ve ever heard and like always it is so fucking simple
Pure gold :)
Hi Victor,
What about having debt to buy real estate in order to turn a profit once the prince increases? Here in Sweden, you normally buy an apartment but you still pay a fee each month (+debt to the bank) to the housing association which you bought the apartment from. If I would rent an apartment the costs would be the same but all the money would go to the rent lord.
That’s fine.
Be careful with real estate in Sweden, at least in the three big cities. Huge housing bubble. I’m in the shit myself with a large mortgage in Stockholm, but the option of paying overpriced rent to a landlord is not that appealing either. Tricky situation but don’t count on making big money on your “investment”, leverage can be both a savior and a killer.
I am also feeling the scent of a huge housing bubble but also a looming finacial crisis. As of now, I am renting an apartment in Gothenburg (one of the three big cities) and hoarding cash until better opportunities show up. What is really bothering me is that historically the housing prices have been increasing (even through 07-08) ever since the millenium shift and the trend is barely reversing.
You don’t need cash to buy real estate. Most owners wanting to sell would rather have an income than have to pay taxes on a 6-figure sale of property. Owner finance and you will be cash-flowing from day one.
I agree, Ian. But isn’t it smarter to take a loan to buy the property and have people pay of your costs (mortgage) while renting it to them? Sure, I could save up money and buy the whole property up front and rent it out afterwards but on the other hand I risk to pay more for it in a scenario where the value of the propery goes up.
I like that!
Victor,
What you pointed out is exactly what the world does not want you to do.
1- Young American souls are going into debt at an alarming rate. No rare they end with 6 digits debt by age 26.
2-Most Americans have an average of 5 credit cards.
3-Most average Americans buy stocks borrowing money.
We are a society that believes in debt rather than savings.
Regards,
-Horacio
I did not quite understand the second … What do you mean?
Owwwwwwwww!!!
I have written here before that I obtained my financial freedom as a real estate investor in Austin, Texas. I have lived my life just like these six items state for over 35 years. I still drive used pickup trucks that I buy for cash and do my own maintenance on them. I do have a credit card, but I never carry any balance on it ever I pay it off 100% each month and I pay zero interest. I have sat on the sidelines for years watching people keep up with the Jones’s, and thinking to myself that they are stupid. I have never wasted my hard earned money on BMW or expensive boats or expensive airplanes, or any of that junk. I am financially well off, but I live way below my means.
My father always lived like this. Always below your means. As a child I did not understand why …
Today, mature I understand very well.
As a Dave Ramsey listener (it works!) I am very happy to read this article. The 10x point is pure gold.
Day 4 (Sunday) report: all went according to plans.
Snack of choice: slightly salted Air popped popcorn. No added butter or oil.
Going to print this and put it somewhere my whole family can see it.
Yo! I’ve been keeping up with the November articles but haven’t been reading the comments.
They’re really great. Awesome to see the dudes pushing themselves - physically, creatively, financially. Good work y’all.
I told Vic I’m publishing a podcast every day. So far I’ve published one a day. New up will be up this evening. Cheers!
Day Five of No Fap and I feel like am on top of the world!!
There is only one thing I need to take care of in order to free of this curse, and that’s “Shame”.
This week I will be meeting my mentor and tell him about involvement in porn and my struggle with it this 2.5 years.
Its been hard because I know he will be shocked and probably disappointed. But then, so what?
I had tried so hard to open up and ask for help all these years but each time I attempt to, it feels like I will crucified. Whichever be the case, this is time to be free and I am ready to pay the price. I will report back how it goes.
Thank you Uncle Vic. for this challenge and thank you for this great article!
Valuable item! I love Victor’s writing.
The second call enchanted me!
War report: 5 days -
I woke up 10 minutes before the alarm clock, I did the exercises (I already feel an extra force difference).
One of the difficult parts is the 3 daily meals.
The icy baths are already becoming pleasant.
5 days without FAP.
So far so good!
“You give away the product of your labor to your boss (imagine grown men calling another man “boss”
I never, ever call another man my ‘boss’, ever. People say ‘your boss’ and I correct them and say “I am my own boss, nobody fucking owns me regardless of some bullshit corporate structure or HR title….and furthermore I can fire HIM and this company anytime I feel like it……..hence I AM THE BOSS”
My hats off to you Mr. Victor Pride.
One of your best articles so far.
I’ve never been in debt and never will, though I couldn’t get my head around how i’d afford a house on cash only. This article got me thinking a little deeper and the answer became clear -Make money and buy/build something affordable.
So simple, yet so powerful.
Short and sweet, and always to the point. Tough love for those who want to hear the truth.
I’m on my way to finally get out of debt, and working hard building my business. Thanks for the reminders.
definetley true, there are lot of abandoned mansions in USA we can use them, instead of taking loans.
Debt is fine if it is productive debt. It is consumer debt that is the slave maker.
(Productive debt is a debt facility for one’s business; a successful business of course.)
Max Weber has a wonderful line about keeping one’s credit lines healthy and robust, something to the effect of: the money lender should hear the pounding of the blacksmiths hammer when he passes by the blacksmiths home, it instills confidence in both parties.
* If it is consumer debt then that is the slave maker…
Love this advice. I Remember reading your articles years back when B&D was new, you inspired me to start my dropshipping and blog businesses. I used to wake up like a depressed zombie working 16 hours a week. I now wake up inspired, EVERYDAY. B&D lit the fired under my ass that I needed.
Nice - I don’t have any debt - so the only thing I need to do now is start a business
I’m in the process of buying a house right now, with loan. I could rent it but the rent is more expensive, and why should I be making anyone else rich for a house that will never be mine, if I can pay a lower rent for property that will eventually be mine and can be sold if needed, etc.
Hello Vic,
Great article! I like your results so far from the 30D blog challenge.
I agree debt is slavery, and car loans in particular are bullshit because cars are a rapidly depreciating asset. That being said, I would NEVER buy a 1k car. Here is why
1.) A 1K car, when it was new, cost at least 15-20k. While the car may have lost most of its value, parts and labor do not depreciate. A “cheap” car often will need money put into fixing all the things that are prone to break, esp. since car manufacturers design their cars to be obsolete after so many years to encourage customers to buy newer models. While there are exceptions, most cheap 1-2k cars I’ve seen turn into money pits, also its a PITA to constantly be fixing shit that breaks with your car.
2.) Older cars, esp. really old ones that cost 1-2k, are often unsafe and have ancient airbags or outdated safety equipment. I’ve seen many accidents caused by people being distracted by their phones or drunk drivers running red lights, and I would hate to die in a car accident just to save a couple grand. Personal friend of mine had an old Honda from the 90’s, that thing was cheap and fairly reliable but when he got rear-ended by a texting driver he was paying tens of thousands in hospital fees and his back was never the same. Sometimes spending a little extra is worth it for cars that protect you better from expensive medical bills and permanent injuries.
That being said, new cars are slavery, and they lose 20% value instantly. I would say a car around 5k or so hits a sweet spot where it has absorbed most depreciation but can still be decently reliable and safe enough to not endanger your life
Just personal opinion. I advocate being minimalist, buying groceries in bulk, not spending money on stupid shit, and avoiding debt, loans, and credit at all costs. But sometimes spending a little extra pays off in the long run when it comes to metal boxes designed to protect you from other metal boxes all driving at a high speed very close to you.
If you can’t afford a good car, just use Uber or find other ways to get around until you can afford to pay for it in cash. DON’T GET A JUNKER CAR. Car accidents can rob you of life and limb in so many ways.
Great article Vic.
It would be great to see more financial posts this month.
You say dont buy something unless you can buy 10 of them, what if you are investing in professional youtube videos to promote you.inc ??
I have a great training knowlage and physique
Business expenses are not the same as personal expenses.
Man oh man, did I ever need to read this right now.
I swear Vic, every time I went to the bank to get a loan to fix the rut I’m in from my last s#$%y loan I thought of YOU and just imagined you shaking your head and dammit I should have listened.
Ya I kept up with my neighbors and what do I have to show for it?
STRESS AND HOPELESSNESS 24/7!!!
My main 30 DOD goal is to take huge bites out of my debt until this cancer is finally gone! This is life or death!
Thank you for posting this!
Victor,
Wishing you good fortunate, prosperity and great health.
I am currently an IT project manager who is looking go into contracting as opposed to working for a company as an employee. This way I can look at working out in cool places in the Gulf states like Dubai and have more flexibility over work..
Would you consider this to be financial freedom?
“Would you consider this to be financial freedom?”
No but I would consider a step in that direction.
Thanks for the speedy response!
Vic, how am I supposed to build and or have a good credit score if I don’t don’t build credit by using credit cards or taking paying off a loan? Also how about leasing a vehicle if you’re able to write the whole lease payment off as a business expense?
I’ve been thinking about getting a mortgage. Doesn’t it make sense as a long term investment? I’m 36 now and the last 18 years I’ve paid rent towards other peoples’ homes.
I don’t like the prospect of paying rent towards other people’s homes for the next 15/20 years. To me it makes sense that I slowly pay off my mortgage over that 15/20 year timeframe and sell the fucking place when I’m 55.
What am I missing here? (Apart from the obvious “debt is bad”)
Thanks,
If you take a 200k mortgage at 4% interest you will end up paying $343,739.01 for your house. The innocent little 4% interest costs you nearly the cost of the entire house. That’s $143,739.01 you pay EXTRA. Until those 30 years are finished, you don’t own the house the bank does. You are a renter. For the privilege of purchasing 1 house for the price of 2, after 30 years you get to “own” it. For 30 years you are a slave to the bank. And probably longer as “homeowners” typically become very greedy and take “home equity” loans furthering their debt slavery. Or you could save up and pay cash.
Thanks for the replies, guys. I’m more with Doc’s way of thinking. I wouldn’t be going out to get a £200k property anyway. I’ve been saving for a substantial deposit which helps attain a low interest rate (in the UK at least). I would be looking at a 2-bed apartment, not a house. This is because, more than likely, I will want to move in the future.
So this is why I would see it as an investment. A quick and rough calculation tells me I’ve spent around £67,000 - £70,000 since I began renting 18 years ago. Absolutely nothing to show for it. That makes me sick.
Also you’re totally right about the car loan bullshit. If I need a car for a day or a week I rent one. No insurance, no taxes, no upkeep, just a day-rate every now and then if I really need wheels.
I would say that Victor is right about a 30 yr mortgage for sure. The most you should take out would be a 15 yr mortgage so that you’ll pay less interest over time even though your payments would be more per month. If you can’t afford the monthly nut on a 15 yr, then the house is probably too expensive for you and you should pass. If your source of income is secure enough and you think you’ll live in the area for 10 years, then a 15 yr mortgage would be ok. Also if you decide after 7-8 years that you want to move, you’ll have paid down enough principal that even if the house has not gone up in value, you can sell it without worrying about being underwater on it. Car loans can be useful too if you buy a REASONABLY priced 2-3 yr old used car, put some money down and then pay it off in 3 years. Like was mentioned above, buying a junker is risky. Car loans end up bad because most people don’t put any money down and buy a way too expensive car like a new Bimmer.
“5) Don’t keep up with the neighbors
Keeping up with the neighbors habit of “buying” toys is a race to see who can be a bigger slave”
Savage! My favorite line in the whole article lolol.
Does the 10x rule apply for self-education too? There is an e-commerce event which I really want to attend but it’s quite expensive and let’s say, I can afford only 3x the original price. I’m not sure if I should go for it or not. What do you say?
Rule does not apply to business and education.
I’m not sure I understand. So if I want to buy a house, and it costs $200,000, then by your reasoning I will need to have $2 million in the bank?